January 2019

On July 11, 2018, Cambodia passed an amendment to the Labor Law that eliminates “indemnity for dismissal”—a local legal concept equivalent to a severance payment—for undetermined duration contracts (i.e., employment contracts without a fixed expiration date, or UDCs), and replaces it with an ongoing requirement for employers to pay employees a new “seniority payment.” These amendments affect undetermined duration contracts, and may also affect fixed-term contracts (i.e., employment contracts with a fixed expiration date).

The increasing number and flavors of multinational employers in the world today has resulted in a hunger for relevant and accurate data on how to manage this unique set of global employees. How does one structure a company’s management and culture? Should the headquarters’ norms prevail or should leadership err on the side of decentralization and respect for each country office’s preferences? If one wanted a balance of the two, how would one even go about it?

Saudi Arabia, together with the other members of The Gulf Cooperation Council, UAE, Bahrain, Kuwait, Oman, and Qatar, are shifting their focus on the importance of occupational health and safety.

Recently, the Saudi Arabia Ministry of Labor and Social Development announced a new guideline that will ensure the occupational health and safety of workers. In compliance with the National Strategic Program for Occupational Safety and Health, the new resolution provides employers with a framework to manage all the occupational health and safety issues affecting their employees.

As of January 2019, the minimum monthly wage in Malaysia will be RM 1,050 per month or RM 5.05 per hour. In a statement issued by the Prime Minister’s office, the set increase in the minimum wage comes as a result of the country’s economic situation and the figure that was decided upon was proposed by the National Wage Consultative Council.

The Vietnamese government issued a ruling on October 15th, 2018 that highlights a new regulation on compulsory social insurance applicable to all foreign employees, decree No. 143. Initially, the 2014 Social Insurance Law indicated that international workers only be permitted (not required) to participate in Vietnam’s Social Insurance as of 1st January 2018.

The vagueness of this regulation is what raised concerns as to the scope of Social Insurance by foreign employees- is it compulsory or is it optional?